Act 731 Page 1 of 68

LAWS OF MALAYSIA
Act 731

Money Services Business Act 2011

Date of Royal Assent 26-Aug-2011
Date of publication in the Gazette 15-Sep-2011

An Act to provide for the licensing, regulation and

supervision of money services business and to provide for
related matters.
[1 December 2011.] PU(B) 590/2011.

ARRANGEMENT OF SECTIONS
PART I

PRELIMINARY

1. Short title, commencement and non-application

2. Interpretation
3. Functions, powers and duties of the Bank
PART II

LICENSING

4. Prohibition from carrying on money services business

5. Application for licence
6. Requirements for a licence
7. Grant or refusal of licence
8. Fees

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 2 of 68

9. Renewal of licence
10. Conditions of licence
11. Display of licence
12. Revocation of licence
13. Appeal against revocation of licence
14. Licence to be forwarded to the Bank
15. Effect of expiry, non-renewal, revocation or surrender of
licence
16. Surrender of licence
17. Preservation of rights and claims
18. Approval for change in name of licensee
19. Restriction of business
20. Publication of list of licensees
PART III

MONEY SERVICES BUSINESS

21. Office of licensee

22. Maintenance of capital
23. Use of words “money services business”, etc.
24. Name to be affixed outside office
25. Advertisement
26. Transparency in dealings
27. Licensee to issue receipt
28. Maintenance of records by licensee
29. Sale, leasing, etc., of money services business
30. Appointment of director, chief executive officer or
manager
31. Appointment of auditor
32. Shareholders of licensee
33. Effecting change in shareholding structure
34. Submission of information or documents
35. Submission of false information
36. Operational and governance arrangements
PART IV

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 3 of 68

REMITTANCE BUSINESS

37. Customers’ funds to be kept separately

38. Certificate of closure
39. Operational requirements
40. Use of remittance system by a licensee who carries on
remittance business
41. Revocation of approval granted under subsection 40(1)
PART V

MONEY SERVICES BUSINESS AGENTS

42. Appointment of money services business agents

43. Application and grant of approval
44. Register of money services business agents
45. Prohibition from carrying on money services business on
behalf of a licensee
46. Money services business agents to comply with provisions
of this Act, etc.
47. Revocation of approval for appointment of money services
business agent
PART VI

EXAMINATION

48. Examination of licensee, etc.

49. Examination of specific persons
50. Right of access and production of property, etc.
51. Appearance before examiner
52. Confidentiality of examination reports
PART VII

INVESTIGATION AND ENFORCEMENT

53. Appointment of investigating officer

54. Powers of investigating officer
55. Search and seizure with warrant

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 4 of 68

56. Search and seizure without warrant

57. Power of an investigating officer in the course of
investigation
58. Access to data, etc.
59. Warrant admissible notwithstanding defects
60. List of property, etc., seized
61. Release of the property, etc., seized
62. Obstruction to exercise of powers by an investigating
officer
63. Requirement to provide translation
64. Notice to call for examination
65. Power to examine person
66. Surrender of travel documents
67. Assistance to police officer or public authority, etc.
68. Investigating officer deemed to be public servant and
public officer
69. Seizable offence
70. Arrested person to be made over to the police
71. Agent provocateur
72. Specific persons in respect of whom powers of
investigation may be exercised
PART VIII

OTHER POWERS OF THE BANK

73. Power of the Bank to issue directives

74. Power of the Bank to issue guidelines, etc.
75. Power of the Bank to take administrative actions
76. Civil action by the Bank
77. Power of court to make certain orders
78. Power to make regulations
79. Power of the Bank to publish information
PART IX

MISCELLANEOUS

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 5 of 68

80. Offence by body corporate

81. Offence by employee or agent
82. Joinder of offences
83. Protection against suits and legal proceedings
84. Secrecy
85. Permitted disclosures
86. Attempts, abetments and conspiracies
87. General penalty
88. Power to compound
89. Prosecution
90. Minister may amend the Schedule
91. Exemptions
92. Act to be read together with the Exchange Control Act
1953
PART X

REPEAL, SAVINGS AND TRANSITIONAL

93. Repeal
94. Savings
95. Grant of licence to persons deemed to be licensed or
permitted to carry on business
96. Transitional
SCHEDULE

PART I

PRELIMINARY

Short title, 1. (1) This Act may be cited as the Money Services
commencement and Business Act 2011.
non-application

(2) This Act comes into operation on a date to be

appointed by the Minister by notification in the Gazette.
(3) This Act shall not apply to any authorized dealer.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 6 of 68

Interpretation 2. In this Act, unless the context otherwise requires—

“accounts” includes records of any financial transactions

of licensees;
Act 577. “repealed Act” means the Money-Changing Act 1998
[Act 577];
“unsafe and unsound practices” means any practice or
conduct by a licensee or a money services business agent
which creates the likelihood of insolvency, loss or
dissipation of the assets of the licensee or the money
services business agent, or is otherwise detrimental to the
interest of its customers or the public;
“Bank” means the Central Bank of Malaysia;
“licensed bank” means—
Act 372. (a) a licensed bank with the same meaning as assigned to
it in section 2 of the Banking and Financial
Institutions Act 1989 [Act 372]; or
Act 276. (b) an Islamic bank with the same meaning as assigned
to it in section 2 of the Islamic Banking Act 1983
[Act 276];
“fund” or “money” includes any unit of account or unit of
value that facilitates the purchase of goods or services;
“data” means representations of information or concepts
that are being prepared or have been prepared in a form
suitable for use in a computer;
“money services business agent” means a person—
(a) appointed by a licensee in accordance with section 43
to carry on money services business on behalf of the
licensee; and
(b) registered by the Bank as a money services business
agent under section 44;
“Governor” means the Governor of the Bank and
includes a Deputy Governor of the Bank;
“property” means—
(a) assets of every kind, whether corporeal or
incorporeal, moveable or immovable, tangible or
intangible, however acquired; or
(b) legal documents or instruments in any form,
including electronic or digital, evidencing title to, or
interest in, such assets, including bank credits,
traveller’s cheques, bank cheques, money orders,
shares, securities, bonds, drafts and letters of credit;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 7 of 68

“licence” means a licence granted under section 7;

“chief executive officer”, in relation to a licensee, means
a person, by whatever name called, who, either individually
or jointly with one or more other persons, is responsible,
subject to the authority of the board of directors of the
licensee, for the conduct of the business and the
management of the licensee;
“computer” means any device for recording, storing,
processing, retrieving or producing any information or
other matter, or for performing any one or more of those
functions, by whatever name or description that device is
called, and where two or more computers carry out any one
or more of those functions in combination or in succession
or otherwise conjointly, they shall be treated as a single
computer, whether the computers are located within the
same premises or otherwise, whether in or outside
Malaysia;
“information” includes explanations as may be required
by the Bank;
“foreign currency” means currency notes or coins which
are legal tender in any country, territory or place outside
Malaysia, and includes any right to receive foreign
currency in such form as the Bank may prescribe, but
excludes such foreign currency as the Bank may prescribe;
“specify” means specify in writing, and a power to
specify includes the power to specify differently for
different persons or different classes, categories or
descriptions of persons, and to amend any specification;
“prescribe” means prescribe by regulations published in
the Gazette, and a power to prescribe includes the power to
prescribe differently for different persons or different
classes, categories or descriptions of persons;
“Minister” means the Minister charged with the
responsibility for finance;
“computer output” means a statement or a representation,
whether in written, printed, pictorial, film, graphical,
acoustic or other form—
(a) produced by a computer;
(b) displayed on the screen of a computer; or
(c) accurately translated from a statement or
representation so produced;
“office” includes the principal place of business, a
branch, an agency, a mobile place of business, a place of
business set-up and maintained for a limited period only,

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 8 of 68

and an electronic terminal or platform and any other place

from where, or at which, a money services business is or
was carried on;
Act 265. “employee”, in relation to a licensee, has the same
meaning as assigned to it in the Employment Act 1955 [Act
265] and includes the chief executive officer and the
manager;
“licensee” means a person licensed under this Act;
Act 125. “substantial shareholdings” and “substantial
shareholders” have the same meaning as assigned to them
in section 69D of the Companies Act 1965 [Act 125];
“director” includes any person who occupies the position
of a director, by whatever name called, and, in particular,
without prejudice to the foregoing, in the case of—
(a) a corporation, has the same meaning as assigned to it
in section 4 of the Companies Act 1965;
(b) a statutory body, means a member of the board,
committee, council or other governing body, by
whatever name called, of the statutory body;
(c) a partnership, means a partner;
(d) a sole proprietorship, means the sole proprietor; and
(e) any other body, association or group of persons,
whether corporate or unincorporated, means any
person having the direction and control of the
management of its affairs or business;
“controller”, in relation to a licensee, means a person
who, either alone or with any associate—
(a) has an interest in more than fifty per centum of the
shares of the licensee;
(b) has an interest in one-third or more of its voting
shares;
(c) has the power to appoint or cause to be appointed a
majority of the directors of the licensee;
(d) has the power to make or cause to be made, decisions
in respect of the conduct of the business or the
management of the licensee and to give effect to such
decisions or cause them to be given effect to; or
(e) is the chief executive officer of the licensee or of a
body corporate of which the subsidiary is a licensee,
and the word “control” shall be construed accordingly;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 9 of 68

“manager”, in relation to a licensee, means an officer of

the licensee by whatever name called, responsible for an
office of the licensee, or for a department or a division of
such licensee;
Act 17. “authorized dealer”, in relation to foreign currency,
means a person for the time being authorized by an order of
the Controller of Foreign Exchange under the Exchange
Control Act 1953 [Act 17] to act for the purposes of that
Act as an authorized dealer;
“wholesale currency business” means the business of—
(a) buying or selling foreign currency with an authorized
dealer, a licensee or any person outside Malaysia, as
the case may be;
(b) importing foreign currency notes from, or exporting
foreign currency notes to, any person outside
Malaysia; or
(c) such other business as the Bank may prescribe;
“remittance business” means the business of transferring
funds or facilitating the transfer of funds, whether in any
form or by any means or whether there is any movement of
funds or not, on behalf of an originator person in or outside
Malaysia, with a view to making the funds available to a
beneficiary person in or outside Malaysia and the originator
person and the beneficiary person may be the same person,
but excludes such other businesses, activities, systems or
arrangements as the Bank may prescribe;
“money-changing business” means any or all of the
following businesses:
(a) the business of entering into an exchange transaction
at a rate of exchange;
(b) the business of buying or selling travellers’ cheques,
on behalf of an issuer of travellers’ cheques, at a rate
of exchange;
(c) such other business as the Bank may prescribe;
“money services business” means any or all of the
following businesses:
(a) money-changing business;
(b) remittance business;
(c) wholesale currency business;
“premises” include—

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 10 of 68

(a) a structure, whether or not movable or offshore,

physical or otherwise, building, tent, vehicle, vessel,
hovercraft or aircraft;
(b) a place, whether or not enclosed or built upon; and
(c) part of any premises, including premises of a kind
referred to in paragraph (a) or (b);
“programme” means data representing instructions or
statements that, when executed in a computer, causes the
computer to perform a function, which includes logic,
control, arithmetic, deletion, storage, and retrieval, and
communication or telecommunication to, from or within a
computer;
“ringgit” means currency notes or coins which are legal
tender in Malaysia and includes any right to receive ringgit
in such form as the Bank may prescribe;
“company” has the same meaning as assigned to it in
section 4 of the Companies Act 1965;
“appointed date” means the date of coming into operation
of this Act;
“exchange transaction” means an exchange of one
foreign currency with ringgit or with another foreign
currency.

Functions, powers and 3. (1) The Bank shall have all the functions and powers
duties of the Bank conferred, and the duties imposed on it by this Act, and the
Act 701. same shall be in addition to those conferred or imposed
under the Central Bank of Malaysia Act 2009 [Act 701].
(2) For the purpose of this Act, the Governor shall
perform the functions of the Bank on its behalf.
(3) The Bank may authorize an employee or an officer of
the Bank or any other person to perform any or all of the
functions, exercise any of the powers or discharge any of
the duties of the Bank under this Act.

PART II

LICENSING

Prohibition from 4. (1) No person shall carry on money services business

carrying on money without a licence issued under this Act.
services business

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 11 of 68

(2) Subsection (1) shall not apply to a money services

business agent.
(3) The Bank may prescribe different classes, categories
or descriptions of licence in respect of money services
business.
(4) Any person who contravenes subsection (1) commits
an offence and shall, on conviction, be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Application for 5. (1) An application for a licence to carry on money

licence services business shall be made in writing to the Bank by
an applicant—
(a) in such form and manner together with such
documents as the Bank may specify; and
(b) by submitting such information as the Bank may
prescribe.
(2) No person shall apply for a licence to carry on money
services business unless it is a company.
(3) The Bank may, by written notice, require the
applicant or any person who is or is to be a director,
controller or chief executive officer of the applicant to
provide additional information or documents.
(4) If any additional information or document required
under subsection (3) is not provided by the applicant or its
director, controller or chief executive officer, as the case
may be, within the period specified in the written notice or
any extended period granted by the Bank, the application
shall be deemed to be withdrawn and shall not be further
proceeded with, but without affecting the right of the
applicant to make a fresh application.

Requirements for a 6. (1) An applicant for a licence to carry on money

licence services business shall comply with the following
requirements:
(a) every person who is, or is to be, a substantial
shareholder, director, controller, chief executive
officer, or manager of the applicant has fulfilled the
minimum criteria of a “fit and proper” person as the
Bank may prescribe;
(b) the applicant has a sound business plan;
(c) the applicant has appropriate, sound and adequate
governance arrangements, internal control

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 12 of 68

mechanisms and procedures to manage the

operations of the intended money services business
activities;
Act 613. (d) the applicant has appropriate, sound and adequate
internal control mechanisms and compliance
programmes to comply with the requirements of the
Anti-Money Laundering and Anti-Terrorism
Financing Act 2001 [Act 613] and other statutory
obligations to which the applicant is or will be
subject;
(e) the applicant has the financial capability to satisfy the
capital requirements as the Bank may prescribe;
(f) the information and documents furnished by the
applicant to the Bank are true and accurate; and
(g) the applicant has met other requirements which are
necessary to manage the operations of the money
services business as the Bank may specify.
(2) The Bank shall have full discretion to determine
whether an applicant has complied with the requirements
under subsection (1).
(3) The Bank, in considering the application for a licence
under section 5 shall take into account the following
matters:
(a) any matter relating to any person who is or will be
employed by, or associated with, the applicant for the
purpose of the money services business of the
applicant;
(b) any matter relating to any related or associate
corporation or to any substantial shareholder,
director, controller or chief executive officer of the
applicant;
(c) any information relating to the applicant in the
possession of the Bank whether provided by the
applicant or not; and
(d) whether the granting of the licence would be
beneficial to the national and economic interest of
Malaysia.

Grant or refusal of 7. (1) The Bank may, after considering the application
licence for a licence under section 5 and being satisfied that all the
requirements under subsection 6(1) have been complied
with and all matters under subsection 6(3) have been taken
into account, grant a licence or refuse to grant the licence.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 13 of 68

(2) The Bank may impose such conditions as it considers

appropriate in granting a licence.
(3) The duration of a licence shall be for a period as the
Bank may prescribe.
(4) A licensee who fails to comply with any condition
imposed under subsection (2) commits an offence and
shall, on conviction, be liable to a fine not exceeding five
million ringgit or to imprisonment for a term not exceeding
ten years or to both.

Fees 8. (1) A licensee shall pay to the Bank—

(a) an annual fee for each of its offices; and

(b) such other fees as the Bank may prescribe relating to
its money services business,
of such amount and in such manner as the Bank may
prescribe.
(2) There shall be no refund of any annual fee or other
fees paid under subsection (1) by the Bank to any person in
the event a licence is revoked, or not renewed by the Bank,
or surrendered to the Bank, before the expiry of the licence.

Renewal of licence 9. (1) An application by a licensee for renewal of its

licence shall be made in writing to the Bank—
(a) in such form and manner together with such
documents as the Bank may specify; and
(b) by submitting such information as the Bank may
prescribe.
(2) The Bank may, by written notice, require the licensee
or a director, controller or chief executive officer of the
licensee to provide additional information or documents.
(3) The Bank may, after considering the application for
renewal of licence under subsection (1)—
(a) renew the licence, with or without conditions; or
(b) refuse to renew the licence.
(4) The Bank may refuse the application for renewal of a
licence made under this section if—
(a) the application is received by the Bank after the
expiry of the licence;
(b) the application was not made in accordance with
subsection (1);

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 14 of 68

(c) the licensee has failed to submit the additional

information or documents as required under
subsection (2);
(d) the licensee has not complied with the requirements
of this Act, or regulations, guidelines, circulars,
standards or notices under this Act; or
(e) the business conduct of the licensee, in the opinion of
the Bank, was unsatisfactory.
(5) Where a licensee submits an application for renewal
of its licence as provided under subsection (1), the licence
shall continue to be in force until a decision is made by the
Bank on the application for the renewal of the licence.
(6) Where the Bank proposes to refuse to renew the
licence, the Bank shall give the licensee a written notice
setting out the grounds for the refusal as soon as
practicable.
(7) The licensee shall be given an opportunity to make a
written representation to the Bank within fourteen days
from the date of the written notice under subsection (6).
(8) Where no written representation is received by the
Bank within the period specified under subsection (7), the
Bank shall refuse the application for renewal of the licence
by written notice.
(9) Where written representation is received, the Bank
shall, after considering the written representation, give the
licensee written notice of its decision as soon as
practicable.
(10) A refusal to renew the licence under subsection (8)
or (9) shall not take effect until the expiry of the licence or
if the licence is still valid pursuant to subsection (5), until
the expiry of a period of fourteen days from the date of the
written notice under subsection (8) or (9), as the case may
be.
(11) A licensee who fails to comply with any condition
imposed under paragraph (3)(a) commits an offence and
shall, on conviction, be liable to a fine not exceeding five
million ringgit or to imprisonment for a term not exceeding
ten years or to both.

Conditions of licence 10. (1) Notwithstanding any other provisions of this Act,
the Bank may, at any time—
(a) amend or revoke any condition imposed under this
Act; or

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 15 of 68

(b) impose a limit on any condition imposed under this

Act so as to expire on a specified date.
(2) Notwithstanding any other provisions of this Act, the
Bank may, at any time, impose any new conditions on a
licence.
(3) A licensee who fails to comply with any condition
imposed under subsection (2) commits an offence and
shall, on conviction, be liable to a fine not exceeding five
million ringgit or to imprisonment for a term not exceeding
ten years or to both.

Display of licence 11. (1) Every licensee shall display in a conspicuous

position—
(a) its licence at its principal place of business; and
(b) a copy of its licence at each of its other offices.
(2) Subsection (1) shall not apply to an electronic
terminal.
(3) A licensee who contravenes subsection (1) commits
an offence.

Revocation of licence 12. (1) The Bank may revoke a licence if it is satisfied
that—
Act 553. (a) the licensee, its chief executive officer, or any of its
Act 312. shareholders, controllers, directors, or managers, has
Act 627. been convicted of an offence under the Central Bank
Act 618. of Malaysia Act 2009, the Banking and Financial
Institutions Act 1989, the Islamic Banking Act 1983,
the Insurance Act 1996 [Act 553], the Takaful Act
1984 [Act 312], the Exchange Control Act 1953, the
Payment Systems Act 2003 [Act 627], the
Development Financial Institutions Act 2002 [Act
618] or any other written law administered by the
Bank or the Companies Act 1965 or any offence
involving fraud, dishonesty, corruption or other
offences of the same kind;
(b) the controller of the licensee has failed to comply
with the minimum criteria of a “fit and proper”
person;
(c) the licensee goes into liquidation or is wound up or is
otherwise dissolved;
(d) the licensee is contravening or has contravened
section 19, 21, 22, 29, 30, 32, 34, 35, 36, 37, 39, 40
or 42 or subsection 33(2);

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 16 of 68

(e) the licensee has contravened any of the conditions of

its licence;
(f) the licensee has ceased to carry on money services
business for which it is licensed for any continuous
period of six months, or for any period aggregating
nine months during a continuous period of twelve
months;
(g) the licensee has engaged in unsafe and unsound
practices;
(h) the licensee is contravening or has contravened the
provisions of the Anti-Money Laundering and Anti-
Terrorism Financing Act 2001; or
(i) the licensee has failed to ensure that its money
services business agents comply with the prudential
requirements as the Bank may prescribe.
(2) Where the Bank proposes to revoke a licence, the
Bank shall give the licensee written notice setting out the
proposed revocation and the grounds for the revocation.
(3) The licensee shall be given an opportunity to make
written representation to the Bank within fourteen days
from the date of the written notice under subsection (2).
(4) Where no written representation is received by the
Bank within the period specified under subsection (3), the
Bank shall revoke the licence by written notice.
(5) Where written representation is received, the Bank
shall, after considering the representation, give the licensee
written notice of its decision.
(6) A revocation under subsection (4), or a decision to
revoke a licence under subsection (5), shall come into
effect immediately or at any date as the Bank may specify
in its written notice.
(7) Where the Bank decides under subsection (5) not to
revoke the licence, the Bank may impose such conditions
on the licensee as it may specify in the written notice given
under that subsection.
(8) The satisfaction of the Bank that paragraph (1)(d),
(e), (h) or (i) has been contravened by a licensee may be
arrived at regardless as to whether or not there is any
prosecution of any licensee for such contravention.

Appeal against 13. (1) A person whose licence has been revoked may,
revocation of licence within fourteen days of the date of the written notice in
subsection 12(4) or (5) or within such extended period as

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 17 of 68

the Bank may allow, appeal in writing against the

revocation to the Minister whose decision shall be final.
(2) Every appeal under subsection (1) shall be submitted
to the Bank and the Bank shall forward the written appeal
to the Minister together with the Bank’s recommendation
as to whether the appeal ought to be allowed or dismissed.

Licence to be 14. (1) A licensee shall forward the licence to the Bank
forwarded to the Bank within fourteen days from—

(a) the date of the expiry of the licence;

(b) the date the refusal to renew the licence takes effect
under subsection 9(10); or
(c) the date the revocation of the licence takes effect
under subsection 12(6),
as the case may be.
(2) A licensee who contravenes subsection (1) commits
an offence.

Effect of expiry, non- 15. (1) A licensee shall, immediately or within such
renewal, revocation or period as the Bank may specify, cease to carry on the
surrender of licence money services business in respect of which the licence
was granted if—
(a) the licence has expired;
(b) the refusal to renew the licence has taken effect under
subsection 9(10);
(c) revocation of the licence has taken effect under
subsection 12(6); or
(d) surrender of the licence has taken effect under
section 16.
(2) A licensee who contravenes subsection (1) commits
an offence and shall, on conviction, be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.
(3) A licensee whose licence has been revoked or not
renewed under this Act shall not have any claim
whatsoever against the Bank or be entitled to compensation
from the Bank for any damage or loss suffered by or caused
to the licensee by such revocation or non-renewal of
licence.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 18 of 68

Surrender of licence 16. (1) A licensee proposing to surrender its licence shall
give the Bank written notice informing the Bank of the
proposed surrender of the licence, reasons for the surrender
and the date on which the surrender is to take effect.
(2) The licensee shall forward the licence to the Bank
within fourteen days from the date on which the surrender
is to take effect.

Preservation of rights 17. Any revocation, expiry, non-renewal or surrender of a

and claims licence under this Act shall not operate so as to—

(a) affect any agreement, transaction or arrangement

relating to the money services business, as the case
may be, entered into by—
(i) a person prior to the revocation, expiry, non-
renewal or surrender of the licence; or
(ii) a licensee prior to such revocation, expiry, non-
renewal or surrender of the licence,
as the case may be; or
(b) affect any right, claim, obligation or liability arising
under any such agreement, transaction or
arrangement.

Approval for change 18. (1) No licensee shall effect any change in its name
in name of licensee without the prior written approval of the Bank.

(2) A licensee who contravenes subsection (1) commits

an offence.

Restriction of 19. (1) Except with the prior written approval of the
business Bank, a licensee shall not carry on any business activity
other than a money services business activity for which it is
licensed under this Act.
(2) Without prejudice to the generality of subsection (1),
a licensee shall only carry on a money services business
activity for which it is licensed under this Act.
(3) A licensee who contravenes subsection (1) or (2)
commits an offence and shall, on conviction, be liable to a
fine not exceeding five million ringgit or to imprisonment
for a term not exceeding ten years or to both.

Publication of list of 20. (1) The Bank shall publish in the Gazette a list of
licensees licensees not later than on 30 April in each year.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 19 of 68

(2) Where there is any amendment to the list of licensees

under subsection (1) at any time during the interval
between one publication and the next following publication
under subsection (1), the Bank shall cause to be published
in the Gazette a notice thereof.
(3) Without prejudice to subsection (1), the Bank may
publish the list of licensees or any amendments to the list in
such form and manner as the Bank thinks fit.

PART III

MONEY SERVICES BUSINESS

Office of licensee 21. (1) No licensee shall open or relocate an office in

Malaysia without the prior written approval of the Bank.
(2) A licensee shall apply in writing for the written
approval of the Bank under subsection (1)—
(a) in such form and manner together with such
documents as the Bank may specify; and
(b) by submitting such information as the Bank may
prescribe.
(3) The Bank, in granting its approval under subsection
(1), may impose such conditions as it thinks fit.
(4) A licensee who contravenes subsection (1) or fails to
comply with any condition imposed under subsection (3)
commits an offence and shall, on conviction, be liable to a
fine not exceeding five million ringgit or to imprisonment
for a term not exceeding ten years or to both.

Maintenance of 22. (1) A licensee shall maintain, at all times, minimum

capital capital funds as the Minister, on the recommendation of the
Bank, may prescribe.
(2) Notwithstanding subsection (1), the Bank may direct
a licensee in writing to increase the minimum capital funds
of such licensee within such time as the Bank may require
if in the opinion of the Bank the increase is appropriate
based on an evaluation of the financial condition, risk
exposure, internal control mechanisms or risk-management
process of the licensee and the licensee shall maintain such
capital funds at all times.
(3) A licensee who contravenes subsection (1) or (2)
commits an offence.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 20 of 68

Use of words “money 23. (1) No person shall, without the prior written
services business”, approval of the Bank, use the words “money services
etc. business”, “money-changer”, “currency exchange”,
“money exchange”, “forex dealer”, “foreign exchange”,
“bureau de change”, “remittance services”, “money
transfer”, “money remit”, “funds transfer”, “foreign
currency wholesale dealer” or any of their derivatives in
any language, or any other words in any language capable
of being construed as indicating the carrying on of money
services business, in relation to its business, or in the name,
description or title under which it carries on business or
make any representation to such effect in any bill head,
letter, notice or advertisement or in any other manner.
(2) Subsection (1) shall not apply to a licensee, a money
services business agent, an association of licensees for
money services business, an association of employees of
licensees for money services business and an authorized
dealer.
(3) Any person who contravenes subsection (1) commits
an offence and shall, on conviction, be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Name to be affixed 24. (1) A licensee shall at all times affix or paint,
outside office conspicuously and legibly, on the outside of each of its
offices—
(a) its name; and
(b) in the case of a licensee who carries on money
services business, in the national language the words
“Perniagaan Perkhidmatan Wang Berlesen”; or
(c) in the case of a licensee who carries on money-
changing business, remittance business or wholesale
currency business as a sole purpose business under
section 19, in the national language the words
“Pengurup Wang”, “Pengirim Wang” or “Peniaga
Mata Wang Borong”, as the case may be.
(2) A licensee shall display its name and the nature of its
business in accordance with subsection (1) for any dealing
carried out through any electronic means or mobile
services.
(3) A licensee who contravenes subsection (1) or (2)
commits an offence.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 21 of 68

Advertisement 25. (1) No person, other than a licensee or a money

services business agent, shall issue or publish, or otherwise
facilitate any person to issue or publish, an advertisement
containing—
(a) an invitation or offer to enter into any transaction
relating to money services business; or
(b) information which may lead, directly or indirectly, to
a transaction relating to money services business.
Provided that the prohibition in this subsection shall not
apply to the publication by any person of any such
advertisement for or on behalf of a licensee or a money
services business agent.
(2) No person shall issue, publish, or otherwise facilitate
any person to issue or publish an advertisement relating to
money services business which he knows to be misleading,
false or deceptive in a material particular.
(3) Any person who contravenes subsection (1) or (2)
commits an offence and shall, on conviction, be liable to a
fine not exceeding five million ringgit or to imprisonment
for a term not exceeding ten years or to both.

Transparency in 26. (1) A licensee shall provide adequate disclosure to its

dealings customers on its products or services and any other
information relating to such products or services as the
Bank may prescribe, prior to the execution of any money
services business transaction with its customers.
(2) A licensee who contravenes subsection (1) commits
an offence.

Licensee to issue 27. (1) A licensee shall, upon completing any transaction
receipt relating to its money services business, issue a receipt to its
customers in such form and manner as the Bank may
prescribe.
(2) A licensee who contravenes subsection (1) commits
an offence.

Maintenance of 28. (1) A licensee shall maintain all accounts, duplicate

records by licensee copies of receipts and other records, including any
information and documents for each transaction of its
money services business, in such manner as to enable the
reconstruction of any of the transactions and to ensure the
convenient audit of the accounts, receipts and records for a
period of not less than seven years from the date of the

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 22 of 68

execution, completion or termination of the transaction, as

the case may be.
(2) A licensee who contravenes subsection (1) commits
an offence.

Sale, leasing, etc., of 29. (1) No licensee shall, without the prior written
money services approval of the Bank—
business

(a) sell, dispose, lease, assign or transfer howsoever, the

whole or any part of its money services business to;
or
(b) amalgamate or merge its money services business
with,
any other person.
(2) A licensee who contravenes subsection (1) commits
an offence and shall, on conviction, be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Appointment of 30. (1) No licensee shall appoint a person as a director or

director, chief chief executive officer unless such person fulfils the
executive officer or minimum criteria of a “fit and proper” person as the Bank
manager may prescribe and the licensee has obtained the prior
written approval of the Bank for the proposed appointment.
(2) A licensee shall apply in writing for the written
approval of the Bank under subsection (1)—
(a) in such form and manner together with such
documents as the Bank may specify; and
(b) by submitting such information as the Bank may
prescribe.
(3) No licensee shall appoint a person as a manager
unless such person fulfils the minimum criteria of a “fit and
proper” person as the Bank may prescribe.
(4) No person shall accept the appointment as a director,
chief executive officer or manager of a licensee if such
person fails to fulfil the minimum criteria of a “fit and
proper” person as the Bank may prescribe.
(5) The Bank shall have full discretion to determine
whether a person has fulfilled the minimum criteria of a “fit
and proper” person under subsections (1) and (3).
(6) Where a director, chief executive officer or manager
fails to fulfil the minimum criteria of a “fit and proper”

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 23 of 68

person as the Bank may prescribe during the tenure of his

appointment, he shall immediately cease to hold office in
such capacity and act as such, and the licensee shall
immediately terminate his appointment in such capacity.
(7) A person who has ceased to hold office under
subsection (6) shall not have any claim whatsoever against
the Bank or be entitled to compensation from the Bank for
any damage or loss suffered by or caused to him by the loss
or termination of his office.
(8) During the pendency of any criminal proceedings in
any court for any offence under any written law involving
fraud, dishonesty, corruption or other offences of the same
kind against any person who is a director, chief executive
officer or manager of a licensee, such person shall not act
in such capacity, hold any other office, or act in any other
capacity, in that licensee, or in any manner, whether
directly or indirectly, be concerned with or take part or
engage in, any activity, affairs or business whatsoever of or
in relation to that licensee, except as may be authorized by
the Bank, subject to such conditions as the Bank may
impose and such conditions shall be complied with by such
person.
(9) For the purpose of subsection (8), criminal
proceedings referred to shall be deemed to be pending from
the date the accused person is first charged in court for the
offence until the date of the final conclusion of the
proceedings, whether in the court of original jurisdiction or,
in the event of any appeal by any party, in the court of final
appellate jurisdiction.
(10) A licensee shall notify the Bank in writing of the
fact that its director, chief executive officer or manager—
(a) has ceased to hold office in such capacity; or
(b) is involved in the criminal proceedings referred to in
subsection (8),
and the reasons therefor within fourteen days from the date
of the cessation of office or the charge, as the case may be.
(11) Any person who contravenes subsection (1), (3),
(4), (6), (8) or (10) commits an offence.

Appointment of 31. (1) A licensee, at its own expense, shall appoint

auditor annually an auditor who fulfils the requirements as the
Bank may prescribe, to carry out an audit of its money
services business.
(2) A licensee shall notify the Bank in writing of—

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 24 of 68

(a) the appointment of an auditor under subsection (1);

and
(b) the termination of the appointment of an auditor
appointed under subsection (1) and the reasons for
such termination,
and such notification shall be made to the Bank within
fourteen days of such appointment or termination, as the
case may be.
(3) Where an auditor appointed by a licensee under
subsection (1) fails to fulfil the requirements as the Bank
may prescribe under that subsection during the tenure of his
appointment, he shall immediately cease to be the auditor
of the licensee and inform such fact to the licensee, and the
licensee concerned shall immediately terminate the
appointment of the auditor.
(4) The Bank may require an auditor appointed under
subsection (1)—
(a) to submit to the Bank, at any time, such information
as the Bank may require in relation to the audit
carried out by the auditor;
(b) to enlarge or extend the scope of his audit of the
money services business and affairs of the licensee;
(c) to carry out an examination or establish any
procedure in any particular case; or
(d) to submit a report to the Bank on any matters in
paragraphs (b) and (c),
within such time as the Bank may specify.
(5) For the purposes of paragraph (4)(a), the information
required in relation to the audit may include the following:
(a) financial statements of the money services business;
(b) the volume of transactions relating to the money
services business in ringgit equivalent;
(c) a report as to whether proper records of the
transactions in relation to the money services
business have been maintained; and
(d) a report as to whether the licensee has complied with
the provisions of this Act and any other written laws
as the Bank may prescribe.
(6) Where an auditor appointed under subsection (1) in
the course of the performance of his duties under this
section suspects or has knowledge that the licensee has
committed any offence under this Act or any other written

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 25 of 68

laws, it shall be lawful for and incumbent upon the auditor

to give information of such suspicion or commission of an
offence to the Bank.
(7) The licensee shall pay the remuneration of the auditor
in relation to the services of the auditor under this section.
(8) The Bank, if it thinks that the auditor appointed by
the licensee has not carried out his duties to the satisfaction
of the Bank, may require the licensee to appoint another
auditor.
(9) The licensee shall submit a copy of the audit report
duly signed by the auditor to the Bank not later than three
months or such other period as the Bank may specify, after
the end of the financial year of the licensee.
(10) For the purpose of this section, “financial
statement” includes the latest audited annual balance sheet,
profit and loss account, and statement setting out the
sources of the funds, of a licensee.
(11) A licensee who contravenes subsection (1), (2), (3),
(7), (8) or (9) commits an offence.
(12) An auditor who contravenes subsection (3), (4) or
(6) commits an offence.

Shareholders of 32. (1) A licensee shall not allow any of its shares to be
licensee acquired by any person unless such person fulfils the
minimum criteria of a “fit and proper” person as the Bank
may prescribe.
(2) A licensee shall obtain the prior written approval of
the Bank for any new substantial shareholder.
(3) The Bank shall have full discretion to determine
whether a person has fulfilled the minimum criteria of a “fit
and proper” person under subsection (1).
(4) Where any shareholder fails to fulfil the minimum
criteria of a “fit and proper” person as the Bank may
prescribe during the course of the money services business,
the licensee shall inform the Bank in writing of such fact as
soon as possible and the shareholder shall dispose of his
shareholding in the licensee as soon as possible.
(5) For the purposes of this section—
(a) “shareholder” includes any person acting in concert
with the shareholder; and
(b) “person acting in concert” means a person who has
entered into an agreement or arrangement to—

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 26 of 68

(i) acquire jointly or severally interests in shares in a

corporation for the purpose of obtaining or
consolidating control of that corporation; or
(ii) act jointly for the purpose of exercising control
over a corporation by means of interests in shares
of that corporation already held by them jointly or
severally,
and without prejudice to the generality of this
paragraph, the following persons shall be presumed
to be a person acting in concert unless the contrary is
established:
(A) a corporation and its related and associate
corporations;
(B) a corporation and any of its directors, or the
parent, child, brother or sister of any of its
directors, or the spouse of any such director or of
any such relative, for any related trust;
(C) a corporation and any pension fund established by
it;
(D) a person and any investment company, unit trust
or other fund whose investments such person
manages on a discretionary basis; or
(E) a financial adviser and its client which is a
corporation, where the financial adviser manages
on a discretionary basis the funds of its client and
has ten per centum or more interest in the shares
of the client.
(6) A licensee who contravenes subsection (1), (2) or (4)
commits an offence.

Effecting change in 33. (1) Subject to subsection (2), a licensee shall notify
shareholding structure the Bank in writing of any change in its shareholders and
shareholding structure not later than fourteen days after the
changes become effective.
(2) A licensee shall not effect a change in its
shareholders and shareholding structure where the change
would result in the change of control of its money services
business without the prior written approval of the Bank.
(3) The Bank may, at any time after receiving an
application under subsection (2), require the licensee to
provide additional information or documents as the Bank
may require.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 27 of 68

(4) A licensee who contravenes subsection (1) or (2)

commits an offence.

Submission of 34. (1) Every licensee shall submit to the Bank, or to

information or such person as the Bank may authorize in writing, such
documents returns, documents or information, and within such time, as
the Bank may require.
(2) Notwithstanding subsection (1), the Bank may
require any person to submit any information as the Bank
may specify.
(3) A licensee who contravenes subsection (1) or any
person who fails to comply with any requirement specified
under subsection (2) commits an offence.

Submission of false 35. Any person who—

information

(a) evades the provisions of this Act by altering, forging,

destroying, mutilating, defacing, concealing,
removing or by not submitting, any documents; or
(b) furnishes any information required under any of the
provisions of this Act which is false, inaccurate,
misleading or contains material errors or omissions,
commits an offence and shall, on conviction, be liable to a
fine not exceeding five million ringgit or to imprisonment
for a term not exceeding ten years or to both.

Operational and 36. (1) A licensee shall institute and maintain—

governance
arrangements

(a) internal control mechanisms, which include risk

management arrangements, accounting procedures
and security measures, to ensure the safety and
integrity of its money services business;
(b) governance arrangements which are effective,
accountable and transparent to ensure the continued
integrity of its money services business operations,
and
(c) adequate procedures to ensure compliance with the
Anti-Money Laundering and Anti-Terrorism Act
2001 and other written laws,
as the Bank may prescribe.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 28 of 68

(2) A licensee who contravenes subsection (1) commits

an offence.

PART IV

REMITTANCE BUSINESS

Customers’ funds to 37. (1) A licensee who carries on remittance business

be kept separately shall maintain a designated account at a licensed bank for
the purpose of remittance business with its customers.
(2) A licensee who is carrying on remittance business
shall deposit all moneys received from its customers for the
purpose of remittance business into the account referred to
in subsection (1) and such deposits shall be made no later
than the next business day following the business day on
which the moneys were received by the licensee.
(3) A licensee shall not withdraw or utilise moneys from
an account maintained under subsection (1) except—
(a) money that has been paid into the account by the
licensee for the purposes of opening or maintaining
the account;
(b) money properly required for making remittance to or
on behalf of a customer;
(c) money properly required for payment of the fees or
charges of a licensee for rendering remittance
services to a customer and the customer has been
notified that any moneys held for him will be applied
towards or in satisfaction of such fees and charges;
(d) to provide refunds to customers of the remittance
business of the licensee; or
(e) any interest accruing, if applicable.
(4) No money shall be paid into a designated account of
a licensee maintained under subsection (1) except—
(a) money which a licensee has paid into such an
account for the purpose of opening or maintaining
the account; or
(b) money required by subsection (2) to be paid into
such an account.
(5) It shall be the duty of a licensee to withdraw any
money wrongly deposited into its designated account

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 29 of 68

maintained under subsection (1) in contravention of

subsection (4) immediately upon discovery of the mistake.
(6) The moneys in an account maintained under
subsection (1) shall not be liable to be attached, sequestered
or levied upon for or in respect of any debt of a licensee or
any claim whatsoever against a licensee.
(7) Where a licensee is declared insolvent or is wound up
by an order of a court, the moneys in an account
maintained under subsection (1) shall not be deemed to
form part of the property of the licensee.
(8) A licensee who contravenes subsection (1), (2), (3),
(4), (5) or (6) commits an offence and shall, on conviction,
be liable to a fine not exceeding five million ringgit or to
imprisonment for a term not exceeding ten years or to both.

Certificate of closure 38. (1) A person who has ceased to carry on remittance
business arising from the expiry, non-renewal, revocation
or surrender of its licence under this Act shall submit a
certificate of closure, issued by an auditor, to the Bank
within sixty days after the cessation of business.
(2) The auditor referred to in subsection (1) may be an
auditor appointed under subsection 31(1) or any other
auditor appointed by a licensee who fulfils the
requirements as the Bank may prescribe under that
subsection.
(3) The certificate of closure issued by the auditor under
subsection (1) shall confirm that a person who has ceased
to carry on remittance business under subsection (1) has
successfully remitted all funds received from customers
prior to the cessation of business of a licensee to the
intended beneficiaries and that contingency arrangements
or measures have been taken to ensure that where the funds
have not been successfully delivered, the funds have been
refunded to the customers.
(4) Any person who contravenes subsection (1) commits
an offence.

Operational 39. (1) A licensee who carries on remittance business

requirements shall comply with—

(a) the maximum remittance transaction limit;

(b) the time frame for outward remittance instructions
for disbursement of funds to be conveyed to its
correspondent agent;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 30 of 68

(c) the time frame for inward remittance funds to be

made available for collection or delivered to the
beneficiary; and
(d) any other requirements,
as the Bank may prescribe.
(2) A licensee who contravenes subsection (1) commits
an offence.

Use of remittance 40. (1) No licensee who carries on remittance business

system by a licensee shall utilise a remittance system, whether its own system or
who carries on a system of a third party, without the prior written approval
remittance business of the Bank.
(2) The remittance system under subsection (1) shall
meet the minimum requirements as the Bank may
prescribe.
(3) The Bank, in granting its approval under subsection
(1), may impose such conditions as it thinks fit and such
conditions shall be complied with by the licensee.
(4) A licensee who contravenes subsection (1) or (3)
commits an offence.

Revocation of 41. (1) The Bank may revoke an approval granted under
approval granted subsection 40(1) to a licensee who carries on remittance
under subsection 40 business.
(1)

(2) Where the Bank proposes to revoke the approval

granted under subsection 40(1), the Bank shall give the
licensee a written notice setting out the proposed
revocation and the grounds for the revocation.
(3) The licensee shall be given an opportunity to make
written representation to the Bank within fourteen days
from the date of the written notice.
(4) Where no written representation is received by the
Bank within the period specified under subsection (3), the
Bank shall revoke the approval by written notice.
(5) Where written representation is received, the Bank,
after considering the representation, shall give the licensee
written notice of its decision.
(6) A revocation under subsection (4), or a decision to
revoke an approval under subsection (5), shall not take
effect until the expiration of fourteen days from the date of

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 31 of 68

the written notice under subsection (4) or (5) or such other

period as the Bank may specify, as the case may be.
(7) Where the Bank decides under subsection (5) not to
revoke the approval, it may impose such conditions on the
licensee as it may specify in the written notice given under
that subsection.
(8) A licensee who fails to comply with any condition
imposed under subsection (7) commits an offence.

PART V

MONEY SERVICES BUSINESS AGENTS

Appointment of 42. (1) No licensee shall appoint a money services

money services business agent to carry on money services business on its
business agents behalf unless the money services business agent fulfils the
minimum criteria of a “fit and proper” person as the Bank
may prescribe and the licensee has obtained the prior
written approval of the Bank for the proposed appointment.
(2) For the purposes of subsection (1), the Bank may
prescribe the classes, categories or descriptions of licensees
who are eligible to apply to appoint a money services
business agent.
(3) A licensee who contravenes subsection (1) commits
an offence and shall on conviction be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Application and grant 43. (1) A licensee shall apply in writing for the written
of approval approval of the Bank under section 42 to appoint a money
services business agent—
(a) in such form and manner and together with such
documents as the Bank may specify; and
(b) by submitting such information as the Bank may
prescribe.
(2) The Bank may, by written notice, require the licensee
to provide additional information or documents.
(3) Without prejudice to subsection (2), the Bank may
take into consideration any information in its possession
whether provided by the licensee or not.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 32 of 68

(4) The Bank may grant an approval to a licensee to

appoint money services business agent, with or without
conditions, or refuse to grant an approval.
(5) A licensee who fails to comply with any condition
imposed under subsection (4) commits an offence.

Register of money 44. (1) The Bank shall maintain a register of money
services business services business agents approved for appointment under
agents subsection 43(4) in such form and manner as the Bank
deems fit.
(2) Any person may, on payment of a fee as the Bank
may prescribe, inspect the register of money services
business agents maintained under subsection (1) during the
office hours of the Bank.
(3) A copy of or an extract from the register of money
services business agents maintained under subsection (1)
certified to be a true copy or extract under the hand and
seal of the Bank shall, in any proceedings, be admissible in
evidence as of equal validity as the original document.

Prohibition from 45. (1) No person shall carry on money services business
carrying on money on behalf of a licensee unless the person is—
services business on
behalf of a licensee

(a) a company;
(b) appointed by a licensee under section 43; and
(c) duly registered by the Bank as a money services
business agent under section 44.
(2) Any person who contravenes subsection (1) commits
an offence and shall on conviction be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Money services 46. (1) A money services business agent shall comply
business agents to with the provisions of this Act and any other requirements
comply with as the Bank may prescribe.
provisions of this Act,
etc.

(2) A money services business agent who contravenes

subsection (1) commits an offence.
(3) Where an offence under this Act has been committed
by a money services business agent, the licensee of that

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 33 of 68

agent shall also be guilty of that offence unless the licensee

proves to the satisfaction of the court that having regard to
all the circumstances the licensee took all reasonable means
and precautions to prevent such act or omission.

Revocation of 47. (1) The Bank may revoke the written approval
approval for granted under subsection 43(4) for the appointment of a
appointment of money money services business agent if the Bank is satisfied
services business that—
agent

(a) the money services business agent has failed to fulfil

the minimum criteria of a “fit and proper” person as
the Bank may prescribe at any time during the period
of the appointment of such agent;
(b) the money services business agent is contravening or
has contravened such provisions of this Act or any
other requirements as the Bank may prescribe under
subsection 46(1);
(c) the appointment of the money services business
agent has been terminated by a licensee; or
(d) the money services business agent has engaged in
unsafe and unsound practices in carrying out its
money services business.
(2) Where the Bank proposes to revoke the written
approval under subsection (1), the Bank shall give the
licensee written notice setting out the proposed revocation
and the grounds for the revocation.
(3) The licensee shall be given an opportunity to make
written representation to the Bank within fourteen days
from the date of the written notice under subsection (2).
(4) Where no written representation is received by the
Bank within the period specified under (3), the Bank shall
revoke the written approval by written notice.
(5) Where written representation is received, the Bank
shall, after considering the representation, give the licensee
written notice of its decision.
(6) A revocation under subsection (4), or a decision to
revoke the written approval under subsection (5), shall not
take effect until the expiration of fourteen days from the
date of the written notice under subsection (4) or (5) or
such other period as the Bank may specify, as the case may
be.
(7) Where the Bank decides under subsection (5) not to
revoke the written approval, the Bank may impose such

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 34 of 68

conditions on the licensee and the money services business

agent as the Bank may specify in the written notice given
under that subsection.
(8) The satisfaction of the Bank under paragraph (1)(b)
that any of the provisions of this Act or any other
requirements have been contravened by a money services
business agent may be arrived at regardless as to whether
or not there is any prosecution of any person for such
contravention.
(9) The Bank shall immediately remove a money
services business agent from the register of money services
business agents maintained by the Bank under section 44
from the date the revocation takes effect under subsection
(6).
(10) A licensee shall immediately terminate the
appointment of its money services business agent whose
approval has been revoked by the Bank and shall instruct
such agent to cease to carry on money services business on
behalf of the licensee from the date the revocation takes
effect under subsection (6).
(11) Any revocation of the written approval granted to a
money services business agent under this section shall not
operate so as to—
(a) affect any agreement, transaction or arrangement
relating to the money services business, as the case
may be, entered into by such money services
business agent prior to the date the revocation of the
approval takes effect under subsection (6); or
(b) affect any right, claim, obligation or liability arising
under any such agreement, transaction or
arrangement.
(12) The duties and liabilities of a money services
business agent in respect of its customers shall be assumed
by the licensee who appointed such agent upon the coming
into effect of the revocation of approval of such agent
under subsection (6).
(13) A licensee who—
(a) fails to comply with any condition imposed under
subsection (7) commits an offence; or
(b) contravenes subsection (10) commits an offence and
shall on conviction be liable to a fine not exceeding
five million ringgit or to imprisonment for a term not
exceeding ten years or to both.
(14) A money services business agent whose approval
has been revoked by the Bank and the revocation has taken

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 35 of 68

effect under subsection (6) shall not have any claim

whatsoever against the Bank or be entitled to any
compensation from the Bank for any damage or loss
suffered by or caused to him by such revocation.

PART VI

EXAMINATION

Examination of 48. An examiner authorized in writing by the Bank shall

licensee, etc. examine, without any prior written notice, the properties,
documents, information, remittance system or transactions
of—
(a) a licensee or its money services business agent or any
of its offices; or
(b) a money services business agent or any of its offices.

Examination of 49. (1) In carrying out an examination of any licensee or

specific persons money services business agent under section 48, the
examiner may examine—
(a) a person who is, or was at any time, a director, chief
executive officer or employee of that licensee or
money services business agent, as the case may be;
(b) a person who is, or was at any time, a controller or
shareholder of that licensee or money services
business agent, as the case may be; or
(c) a person who is, or was at any time, having dealings,
transactions or arrangements with that licensee or
money services business agent, or acquainted with
the facts and circumstances of the case, including the
auditor of that licensee,
and that person shall give such document or information as
the examiner may require within such time and manner as
he may specify.
(2) An auditor who is subject to an examination under
this section shall not be liable for breach of a contract
relating to, or duty of, confidentiality for giving a document
or information to the examiner.
(3) Any person who contravenes subsection (1) commits
an offence.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 36 of 68

Right of access and 50. (1) For the purposes of an examination under section
production of 48 or 49, a licensee or money services business agent, and
property, etc. its directors, chief executive officers and employees, as the
case may be, shall, when under examination—
(a) allow access to all property, apparatus, equipment,
machinery, computer, computer output, systems
including remittance system, documents or
information;
(b) produce all such property, apparatus, equipment,
machinery, computer, computer output, systems,
documents or information; or
(c) provide the necessary password, encryption code,
decryption code, software or hardware or any other
means required to access and enable comprehension
of any computer output,
to an examiner for purposes of the examination within such
time and manner as the examiner may require.
(2) Notwithstanding the generality of subsection (1), the
examiner under subsection (1) may take possession of any
property, apparatus, equipment, machinery, computer,
computer output, systems, documents or information to
which he is given access under subsection (1) where in his
opinion—
(a) it is necessary for the purpose of inspection,
including copying or making an extract;
(b) it may be interfered with, destroyed, concealed or
removed unless he takes possession of it; or
(c) it may be needed as evidence in any legal
proceedings, whether civil or criminal, which may be
instituted under this Act, the Central Bank of
Malaysia Act 2009 or any other written law.
(3) Any person who contravenes subsection (1) commits
an offence.

Appearance before 51. (1) A person to be examined under section 48 or 49

examiner shall appear before the examiner at such time as he may
specify.
(2) Any person who contravenes subsection (1) commits
an offence.

Confidentiality of 52. (1) Where a report or any part thereof has been
examination reports produced in any form in respect of a licensee or money
services business agent by the Bank upon an examination

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 37 of 68

under section 48 or 49, the report shall not be disclosed by

the licensee or money services business agent or any of its
directors, chief executive officers, employees or auditors to
any other person except in the circumstances provided
under subsection (2).
(2) Disclosure of the report referred to in subsection (1)
may be made—
(a) by the licensee or money services business agent, to
any of its directors, chief executive officers,
employees or auditors solely in connection with the
performance of the duties of such person, as the case
may be;
(b) by the licensee or money services business agent, in
compliance with an order of court; or
(c) by the licensee or money services business agent, to
any other person with the prior written approval of
the Bank.
(3) In granting a written approval for any disclosure
under paragraph (2)(c), the Bank may impose such
conditions as it considers appropriate.
(4) The obligation on a director, chief executive officer,
employee or auditor referred to in subsection (1) shall
continue after the termination or cessation of his
appointment or employment with the licensee or money
services business agent.
(5) Any person who has any document or information
which to his knowledge has been disclosed in
contravention of subsection (1) shall not disclose the same
to any other person.
(6) Any person who contravenes subsection (1), (4) or
(5) or fails to comply with any condition imposed under
subsection (3) commits an offence.

PART VII

INVESTIGATION AND ENFORCEMENT

Appointment of 53. The Bank may appoint any of its officers or

investigating officer employees or any other person authorized under subsection
3(3) to be an investigating officer.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 38 of 68

Powers of 54. (1) An investigating officer appointed under section

investigating officer 53 shall have all the powers, functions and duties conferred
on an investigating officer under this Part, and where such
investigating officer is not an officer or employee of the
Bank, he shall, in relation to such powers, functions and
duties—
(a) be subject to; and
(b) enjoy such rights, privileges, protection, immunities
and indemnities as may be specified in,
the provisions of this Act, the Central Bank of Malaysia
Act 2009 or any other written law applicable to an officer
or employee of the Bank as if he was an officer or
employee of the Bank.
(2) An investigating officer shall be subject to the
direction and control of the Governor, or of such other
officer of the Bank as may be authorized by the Governor
to act on his behalf, and of any investigating officer
superior to him in rank, and shall exercise his powers,
perform his functions, and discharge his duties referred to
in subsection (1) in compliance with such directions,
instructions, conditions, restrictions or limitations as the
Governor, or an officer of the Bank authorized to act on his
behalf, or an investigating officer superior in rank, may
specify orally or in writing, either generally or in any
particular case or circumstance.
(3) The Governor, or any officer of the Bank authorized
by the Governor to act on his behalf, shall have all the
powers, functions and duties of an investigating officer.
(4) An investigating officer conducting any examination
of any person under this Part shall have the power to
administer an oath or affirmation to the person who is
being examined.

Search and seizure 55. (1) If it appears to a Magistrate, upon written

with warrant information on oath and after such inquiry as he considers
necessary, that there is reasonable cause to believe that—
(a) any premises have been used or are about to be used
for; or
(b) there is in any premises evidence necessary for the
conduct of an investigation into,
the commission of an offence under this Act, the
Magistrate may issue a warrant authorizing an investigating
officer named in the warrant, at any reasonable time, by

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 39 of 68

day or by night and with or without assistance, to enter the

premises and if need be by force.
(2) A warrant issued under subsection (1) may authorize
the investigating officer to—
(a) enter any premises and there search for, seize and
detain any property, apparatus, equipment,
machinery, computer, computer output, system,
document or information;
(b) inspect, make copies of, or take extracts from, any
property, apparatus, equipment, machinery,
computer, computer output, system, document or
information so seized and detained;
(c) take possession of, and remove from the premises,
any property, apparatus, equipment, machinery,
computer, computer output, system, document or
information so seized and detained;
(d) search any person who is in, or on, such premises,
and for the purpose of the search, detain the person
and remove him to such place as may be necessary to
facilitate the search, and seize and detain any
property, apparatus, equipment, machinery,
computer, computer output, system, document or
information found on the person;
(e) break open, examine, and search, any article,
container or receptacle; or
(f) stop, detain or search any conveyance.
(3) An investigating officer searching any person under
paragraph (2)(d) may detain the person for such period as
may be necessary to have the search carried out which shall
not in any case exceed twenty-four hours without the
authorization of a Magistrate, and may if necessary remove
him in custody to another place as the Bank may determine
to facilitate such search.
(4) No person shall be searched except by another person
of the same gender, and such search shall be conducted
with strict regard to decency.
(5) An investigating officer may, in the exercise of his
powers under this section, if it is necessary so to do—
(a) break open any outer or inner door of the premises or
any fence, enclosure, gate or other obstruction to the
premises, in order to effect entry into the premises;
(b) forcibly enter the premises and every part of the
premises;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 40 of 68

(c) remove by force any obstruction to entry, search,

seizure, detention or removal as he is empowered to
effect under this section; and
(d) detain any person found in the premises until the
search has been completed.

Search and seizure 56. If the investigating officer is satisfied upon

without warrant information received that he has reasonable cause to
believe that by reason of delay in obtaining a search
warrant under section 55 the investigation would be
adversely affected or evidence of the commission of an
offence is likely to be tampered with, removed, damaged or
destroyed, the investigating officer may enter the premises
and exercise in, upon and in respect of the premises all the
powers referred to in section 55 in as full and ample a
manner as if he was authorized to do so by a warrant issued
under that section.

Power of an 57. An investigating officer may seize, take possession of,

investigating officer and detain any property, apparatus, equipment, machinery,
in the course of computer, computer output, system, document or
investigation information produced before him in the course of his
investigation.

Access to data, etc. 58. An investigating officer shall for the purposes of this
Part be provided with the necessary password, encryption
code, decryption code, software or hardware or any other
means required—
(a) for securing access to any programme or data held in
a computer; or
(b) to enable comprehension of any computer output in a
form in which the information contained in a
computer output can be taken away and in which it is
visible and legible.

Warrant admissible 59. A search warrant issued under this Act shall be valid
notwithstanding and enforceable notwithstanding any defect, mistake or
defects omission in the warrant or in the application for the
warrant, and any property, apparatus, equipment,
machinery, computer, computer output, system, document
or information seized under the warrant shall be admissible
in evidence in any proceedings under this Act.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 41 of 68

List of property, etc., 60. (1) An investigating officer, in the course of his
seized investigation or search, shall—

(a) prepare and sign a list of all property, apparatus,

equipment, machinery, computer, computer output,
system, document or information seized; and
(b) state in the list the location in which, or the person on
whom, the property, apparatus, equipment,
machinery, computer, computer output, system,
document or information is found or obtained.
(2) The occupant of the premises entered under
subsection 55(1) or section 56 in the course of
investigation, or any person on his behalf, or where there is
no such occupant or such person on his behalf, a police
officer, shall in every instance be permitted to attend during
the search, sign the search list or affix his thumbprint
thereon, and be given a copy of the search list prepared and
signed under this section.
(3) Where such occupant, person acting on behalf of the
occupant or police officer under subsection (2) refuses to
sign the search list or affix his thumbprint thereon, the
investigating officer shall endorse on the search list, under
his name, the fact of such refusal and the reasons therefor,
if any, stated by such occupant, person acting on behalf of
the occupant or police officer.
(4) For the purposes of subsections (2) and (3), “police
officer” means a police officer not below the rank of
Inspector.

Release of the 61. (1) An investigating officer, unless otherwise ordered

property, etc., seized by any court, shall—

(a) on the close of investigations or any proceedings

arising therefrom; or
(b) with the prior written consent of any officer of the
Bank authorized by the Governor to act on his behalf
for this purpose, or any investigating officer superior
to him in rank, at any time before the close of
investigations,
release any property, apparatus, equipment, machinery,
computer, computer output, system, document or
information seized, detained or removed by him, or by any
other investigating officer under this Part, to the person
from whom the property, apparatus, equipment, machinery,
computer, computer output, system, document or
information was seized, detained or removed, if he is
satisfied that the property, apparatus, equipment,

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 42 of 68

machinery, computer, computer output, system, document

or information is not required for the purpose of any
prosecution or proceedings under this Act, or for the
purpose of any prosecution under any other written law.
(2) The investigating officer who effects the release
under subsection (1) shall record in writing the
circumstances of, and the reasons for, the release.
(3) Where an investigating officer is unable to locate the
person under subsection (1) from whom the property,
apparatus, equipment, machinery, computer, computer
output, system, document or information was seized,
detained or removed, he shall make an application in
writing to the court as to the disposal of such property,
apparatus, equipment, machinery, computer, computer
output, system, document or information.
(4) The court upon receiving the application under
subsection (3) and being satisfied that the person under
subsection (1) from whom the property, apparatus,
equipment, machinery, computer, computer output, system,
document or information was seized, detained or removed
cannot be located shall order the same to be forfeited or
disposed of by the Bank.

Obstruction to 62. Any person who—

exercise of powers by
an investigating
officer

(a) refuses an investigating officer exercising his powers

under this Part, access to any premises or part
thereof, or fails to submit to the search of his person;
(b) assaults, obstructs, hinders or delays an investigating
officer in effecting an entrance which he is entitled to
effect;
(c) fails to comply with any lawful demand of an
investigating officer in the execution of his duty
under this Part;
(d) refuses to give to an investigating officer any
property, apparatus, equipment, machinery,
computer, computer output, system, document or
information which may reasonably be required of
him and which he has in his power to give;
(e) fails to produce to, or conceals or attempts to conceal
from, an investigating officer, or destroys, alters or
removes, any property, apparatus, equipment,
machinery, computer, computer output, system,

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 43 of 68

document or information which the investigating

officer may require;
(f) retrieves or endeavours to retrieve anything which
has been seized, detained or removed;
(g) furnishes to an investigating officer as true,
information which he knows, or has reason to
believe, to be false; or
(h) before or after any search or seizure, conceals, hides,
alters, disposes of, breaks or otherwise destroys any
property, apparatus, equipment, machinery,
computer, computer output, system, document or
information to prevent its seizure or the securing of
the property, apparatus, equipment, machinery,
computer, computer output, system, document or
information,
commits an offence and shall, on conviction, be liable to a
fine not exceeding five million ringgit or to imprisonment
for a term not exceeding ten years or to both.

Requirement to 63. (1) Where an investigation officer finds, seizes,

provide translation detains or takes possession of, a document which, wholly
or partly, is in a language other than the national language
or the English language, or in any sign or code, the
investigating officer, orally or in writing, may require the
person who had the possession, custody or control of the
document, to furnish to the investigating officer a
translation in the national language or the English language
within such period as he may specify.
(2) Where the person is required to furnish a translation
under subsection (1) is not the person under investigation,
the Bank may pay him a reasonable fee for the translation.
(3) No person shall knowingly furnish a translation
under subsection (1) which is not accurate, faithful and
true, or knowingly make a translation under that section
which is not accurate, faithful and true.
(4) Any person who contravenes subsection (3) commits
an offence.

Notice to call for 64. (1) For the purpose of an examination under this
examination Part, any notice that is given shall, if practicable, be served
personally on the person specified in such notice.
(2) In the case of a corporation, the notice may be served
on the secretary or other like officer of the corporation or

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 44 of 68

on any person who is responsible for the management of

the affairs of the corporation.
(3) Where the person specified in a notice given under
this section cannot by the exercise of due diligence be
found, the notice may be served—
(a) in the case of an individual person, at his residential
address by leaving a copy thereof for him with some
adult member of his family, with his servant residing
with him or with any other adult person occupying
the same premises with him; or
(b) in the case of an entity including a licensee or money
services business agent, at its registered address or
business address, by leaving a copy thereof with an
employee of the entity or to affix such notice to some
prominent part of the premises of the entity.
(4) When the person specified in any notice given under
this Act cannot by the exercise of due diligence be found,
and service cannot be effected as provided by subsection
(3), a copy of the notice shall be affixed to some prominent
part of the premises or such other place in which the person
specified in the notice ordinarily resides, and in such case
the notice shall be deemed to have been duly served.
(5) If upon an investigation made under this Act, it
appears to the investigating officer that there is sufficient
evidence or reasonable grounds for suspicion to justify the
commencement or continuance of any proceedings against
any person, the investigating officer shall require a
complainant, if any, and so many of the persons who
appear to such investigating officer to be acquainted with
the circumstances of the case as he thinks necessary, to
execute a bond to appear before any court therein named.
(6) If any complainant or person referred to in subsection
(5) refuses to execute a bond under that subsection, the
investigating officer shall report such refusal to the court
which may thereupon in its discretion issue a warrant or
summons to secure the attendance of such complainant or
person.

Power to examine 65. (1) Where an investigating officer has reason to

person suspect that an offence is being or has been committed
under this Act, he may, by notice in writing—
(a) order any person to attend before him for the purpose
of being examined orally by the investigating officer
in relation to any matter which may in the opinion of
the investigating officer assist in the investigation
into such offence;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 45 of 68

(b) order any person to produce before the investigating

officer property, apparatus, equipment, machinery,
computer, computer output, system, document,
information, article or thing which may, in the
opinion of the investigating officer assist in the
investigation into such offence; or
(c) require any person to furnish a statement in writing
made on oath or affirmation setting out therein all
such information which may be required under the
written notice, being information which, in the
opinion of the investigating officer, would be of
assistance in the investigation into such offence,
and shall reduce into writing any statement made by the
person so examined.
(2) A person to whom an order under paragraph (1)(a) or
(b), or a requirement under paragraph (1)(c), has been
given shall comply with the terms of such order or
requirement, as the case may be, and, in particular—
(a) a person to whom an order under paragraph (1)(a)
has been given shall attend in accordance with the
terms of the order to be examined, and shall continue
to so attend from day to day as directed by the
investigating officer until the examination is
completed, and shall during such examination
disclose all information which is within his
knowledge, or which is available to him, or which is
capable of being obtained by him, in respect of the
matter in relation to which he is being examined,
whether or not any question is put to him with regard
thereto, and where any question is put to him he shall
answer the same truthfully and to the best of his
knowledge and belief, and shall not refuse to answer
any question on the ground that it tends to
incriminate him or his spouse;
(b) a person to whom an order has been given under
paragraph (1)(b) shall not conceal, hide, destroy,
alter, remove from or send out of Malaysia, or deal
with, expend, or dispose of, any property, apparatus,
equipment, machinery, computer, computer output,
system, document, information, article, or thing
specified in the order, or alter or deface any entry in
any such document, or cause the same to be done, or
assist or conspire to do the same; and
(c) a person to whom a written notice has been given
under paragraph (1)(c) shall, in his statement made
on oath or affirmation, furnish and disclose truthfully
all information required under the notice which is

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 46 of 68

within his knowledge, or which is available to him,

or which is capable of being obtained by him, and
shall not fail to furnish or disclose the same on the
ground that it tends to incriminate him or his spouse.
(3) A person to whom an order or a notice is given under
subsection (1) shall comply with such notice or order and
with the provisions of subsection (2) in relation thereto,
notwithstanding the provisions of any written law, whether
enacted before or after the commencement of this Act, or of
any oath, undertaking or requirement of secrecy, to the
contrary, or of any obligation under any contract,
agreement or arrangement, whether express or implied, to
the contrary.
(4) Where any person discloses any information or
produces any property, apparatus, equipment, machinery,
computer, computer output, system, document,
information, article, or thing, pursuant to subsections (1)
and (2), neither the first-mentioned person, nor any other
person on whose behalf or direction or as whose agent or
employee the first-mentioned person may be acting, shall,
on account of such disclosure or production, be liable to
any prosecution for any offence under or by virtue of any
law, or to any proceedings or claim in any form or of any
description by any person under or by virtue of any
agreement or arrangement, or otherwise howsoever.
(5) An investigating officer may seize, take possession of
and retain for such duration as he deems necessary, any
property, apparatus, equipment, machinery, computer,
computer output, system, document, information, article or
thing produced before him in the course of an investigation
under subsection (1), or search the person who is being
examined by him under paragraph (1)(a), or who is
producing anything to him under paragraph (1)(b), for
ascertaining whether anything relevant to the investigation
is concealed, or is otherwise, upon such person.
(6) A statement that has been reduced into writing by the
investigating officer in accordance with subsection (1) shall
be read to and signed by the person being examined, and
where such person refuses to sign the record, the
investigating officer shall endorse thereon under his hand
the fact of such refusal and the reasons therefor, if any,
stated by the person examined.
(7) The record of an examination under paragraph (1)(a),
or a written statement on oath or affirmation made pursuant
to paragraph (1)(c), or any property, apparatus, equipment,
machinery, computer, computer output, system, document,
information, article or thing produced under paragraph (1)
(b) or otherwise in the course of an examination under

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 47 of 68

paragraph (1)(a) or under a written statement on oath or

affirmation made pursuant to paragraph (1)(c), shall,
notwithstanding any written law or rule of law to the
contrary, be admissible in evidence in any proceedings in
any court—
(a) for, or in relation to, an offence under this Act;
(b) for, or in relation to, any other matter under this Act;
or
(c) for, or in relation to, any offence under any other
written law,
regardless whether such proceedings are against the person
who was examined, or who produced the property,
apparatus, equipment, machinery, computer, computer
output, system, document, information, article or thing, or
who made the written statement on oath or affirmation, or
against any other person.
(8) Any person who fails to comply with an order or
requirement of an investigating officer under subsection (1)
or (2) commits an offence and shall, on conviction, be
liable to a fine not exceeding five million ringgit or to
imprisonment for a term not exceeding ten years or to both.

Surrender of travel 66. (1) Notwithstanding any written law to the contrary,
documents an investigating officer may, by written notice, require any
person who is the subject of an investigation under this
Part, to surrender his travel documents including passport
or exit permit in his possession, within such period as
specified in the written notice.
(2) A notice under subsection (1) shall be served in the
manner provided in section 64.
(3) A person to whom a notice under subsection (1) is
served shall comply with such notice, failing which he may
be arrested and taken before a magistrate.
(4) Where a person is taken before a magistrate, unless
such person complies with the notice under subsection (1)
or satisfies the magistrate that he does not possess a travel
document, the magistrate shall by warrant commit such
person to prison—
(a) until the expiry of a period of fourteen days from the
date of his committal; or
(b) until he complies with the notice under subsection
(1),
whichever occurs earlier.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 48 of 68

(5) For the purpose of subsection (4), a certificate signed

by the Public Prosecutor to the effect that the person has
complied with the written notice under subsection (1) shall
be sufficient warrant for the Superintendent of Prison to
discharge such person.
(6) An investigating officer may, with the written
approval of the Bank, by written notice issued to any
immigration officer, request that any person who is the
subject of an investigation in respect of an offence under
this Act be prevented from leaving Malaysia.
(7) The immigration officer, upon being notified of a
written notice made under subsection (6), may require the
person who is the subject of an investigation in respect of
an offence under this Act, to surrender his passport, exit
permit or any other travel document in his possession to an
immigration officer.
Act 155. (8) Subject to any order issued or made under any
written law, relating to banishment or immigration,
“immigration officer” means any person appointed under
section 3 of the Immigration Act 1959/63 [Act 155].
(9) Notwithstanding subsection (3), any person who fails
to comply with the written notice under subsection (1)
commits an offence.

Assistance to police 67. Notwithstanding anything under this Act or any other
officer or public written law, the Bank, on its own initiative, or at the
authority, etc. request of a police officer or any public authority or
institution, in the course of any investigation under any
law, may allow that police officer, public authority or
institution to have access to or a copy of—
(a) a document seized, detained or taken possession of;
(b) a record of examination; or
(c) a written statement on oath or affirmation,
under this Act.

Investigating officer 68. An investigating officer shall be deemed to be a public

deemed to be public servant for the purposes of the Penal Code [Act 574], and to
servant and public be a public officer for the purposes of the Criminal
officer Procedure Code [Act 593] or any other written law which
Act 574. the Minister, on the recommendation of the Bank, may
Act 593. prescribe.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 49 of 68

Seizable offence 69. An offence punishable under this Act is a seizable

offence, and a police officer not below the rank of
Inspector, or an investigating officer appointed under
section 53 may arrest without warrant a person whom he
reasonably suspects to have committed or is committing
such offence.

Arrested person to be 70. An investigating officer who makes an arrest under

made over to the section 69 shall, without unnecessary delay, make over the
police arrested person to a police officer or, in the absence of a
police officer, take such person to the nearest police station,
and thereafter the person arrested shall be dealt with
according to the law relating to criminal procedure for the
time being in force as if he had been arrested by a police
officer.

Agent provocateur 71. Notwithstanding any law or rule of law to the

contrary, in any proceedings against any person for an
offence under this Act—
(a) no agent provocateur, whether he is an officer or
employee of the Bank or not, shall be presumed to be
an accomplice or be unworthy of credit by reason
only of his having attempted to commit or to abet, or
having abetted or having been engaged in a criminal
conspiracy to commit, such offence if the main
purpose of such attempt, abetment or engagement
was to secure evidence against such person;
(b) any statement whether oral or in writing made to an
agent provocateur by any person, including any
person who is subsequently charged with an offence
under this Act, shall be admissible in evidence and
given due weight and consideration at any trial for an
offence under this Act; and
(c) a conviction for any offence under this Act solely on
the uncorroborated evidence of any agent
provocateur shall not be illegal and no such
conviction shall be set aside merely because the court
which tried the case has failed to refer in the grounds
of its judgment to the need to warn itself against the
danger of convicting on such evidence.

Specific persons in 72. Without prejudice to the generality of other powers of

respect of whom investigation conferred on an investigating officer under
powers of this Part, such powers may be exercised by him—

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 50 of 68

investigation may be
exercised

(a) against—
(i) any past or present business associate of;
(ii) any person who is or was a relative of;
(iii) any person who is, or was at any time, having any
dealings or transactions, including auditors of,
with;
(iv) any past or present director, chief executive
officer, employee or agent of;
(v) any person who is or was concerned with the
control or management, in whole or in part of the
affairs of; or
(vi) any shareholders or any person who has or had an
interest in the shares, or otherwise has or had an
interest in the property of,
the person suspected to have committed an offence
under this Act;
(b) against any business associate or relative of a person
referred to in paragraph (a); or
(c) against any body corporate or unincorporated in
which any person referred to in paragraph (a) is a
director, chief executive officer, employee or agent,
where such body is a corporation, has an interest in
the shares of the corporation.

PART VIII

OTHER POWERS OF THE BANK

Power of the Bank to 73. (1) Where the Bank is of the opinion that—
issue directives

(a) a licensee or money services business agent—

(i) is carrying on money services business in a
manner detrimental to the interests of its
customers or the public generally;
(ii) is contravening or has contravened any provision
of this Act or any regulations made under this
Act;

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 51 of 68

(iii) has failed to comply with any guidelines,

circulars, standards or notices issued by the Bank
under section 74, as the case may be; or
(iv) has become or is likely to become unable to meet
all or any of its obligations under this Act; or
(b) it is necessary to do so as a result of any examination
or investigation under this Act,
the Bank may issue a directive in writing to—
(A) prohibit a licensee or money services business agent
from carrying on all or such part of its business as
may be set out in the directive;
(B) prohibit the licensee or money services business
agent from doing or performing any act or function
connected with all or such part of its business as may
be set out in the directive;
(C) suspend the business of a licensee or money services
business agent to such extent and for such period as
may be necessary to give effect to the prohibitions
under paragraph (A) or (B);
(D) empower the Bank to take into its custody or control,
document, property or effects of the licensee or
money services business agent of a licensee; or
(E) require a licensee or money services business agent
to take any step, take any action, do or refrain from
doing any act or thing, whatsoever, which in the
opinion of the Bank is necessary to remedy the
situation, as the case may be.
(2) In giving any directive under subsection (1), the
Bank may include requirements of a consequential,
ancillary or incidental nature to be complied with by the
licensee or money services business agent and the Bank
may impose such terms, conditions and requirements as the
Bank deems fit.
(3) Where the Bank proposes to issue a written directive
under subsection (1) to a licensee or money services
business agent, the Bank shall give such person written
notice setting out the proposed action and the grounds for
such action.
(4) The licensee or money services business agent shall
be given an opportunity to make written representation to
the Bank within fourteen days from the date of the written
notice.
(5) Where the Bank considers that any delay in giving
the directive to a licensee or money services business agent

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 52 of 68

under this section would be detrimental to the interests of

customers or the public, the Bank may give the directive
and the opportunity to make representation under
subsection (4) shall be given immediately after the decision
to give the directive has been made and in consequence of
the representation, the Bank, may confirm or revoke the
directive.
(6) Where no written representation is received by the
Bank within the period specified under subsection (4), the
Bank shall proceed with the proposed action under
subsection (3) by written notice.
(7) Where written representation is received, the Bank
shall, after considering the representation, give the licensee
or money services business agent written notice of its
decision.
(8) A decision to take action under subsection (6) or (7)
shall take effect immediately or at any date as the Bank
may specify in its written notice, as the case may be.
(9) Where the Bank decides under subsection (7) not to
take any action, the Bank may impose such conditions on
the licensee or money services business agent, as the case
may be, as it may specify in the directive given under that
subsection.
(10) The licensee or money services business agent shall
comply with any directive issued under this section within
such time as the Bank may determine.
(11) A licensee or money services business agent shall
cease its business where the proposed action or decision
taking effect under subsection (8) relates to the suspension
of the business, and such suspension shall not operate as to
affect—
(a) any agreement, transaction or arrangement relating to
the business entered into by the licensee or money
services business agent, as the case may be; or
(b) any right, claim, obligation or liability arising under
any such agreement, transaction or arrangement, as
the case may be,
prior to the suspension of the business.
(12) The satisfaction of the Bank under subsection (1)
that any of the provisions of this Act or any regulations
made under this Act has been contravened or that any
guidelines, circulars, standards or notices has not been
complied with by a licensee or money services business
agent may be arrived at regardless as to whether or not

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 53 of 68

there is any prosecution for the contravention or non-

compliance.
(13) A licensee or money services business agent shall
not have any claim whatsoever against the Bank or be
entitled to compensation from the Bank for any damage or
loss suffered by or caused to him by such directives issued
by the Bank under subsection (1).
(14) Any person who—
(a) fails to comply with any condition imposed under
subsection (9) commits an offence; or
(b) contravenes subsection (10) commits an offence and
shall, on conviction, be liable to a fine not exceeding
five million ringgit or to imprisonment for a term not
exceeding ten years or to both.

Power of the Bank to 74. (1) The Bank may generally in respect of this Act, or
issue guidelines, etc. in respect of any particular provision of this Act, or
generally in respect of the conduct of all or any of the
licensees, issue such guidelines, circulars, standards or
notices as the Bank may consider desirable.
(2) The Bank may revoke or amend the whole or any
part of any guidelines, circulars, standards or notices issued
under this section.
(3) A person to whom the guidelines, circulars, standards
or notices referred to in subsection (1) apply shall comply
with such guidelines, circulars, standards or notices within
such period as may be specified by the Bank.
(4) Where a person referred to in subsection (3)
contravenes or fails to comply with any guidelines,
circulars, standards or notices issued by the Bank, the Bank
may take any action as set out in subsection 73(1) or 75(2)
as the Bank deems fit.

Power of the Bank to 75. (1) Where a person—

take administrative
actions

(a) is contravening or has contravened the provisions of

this Act other than the provisions set out in the
Schedule; or
(b) fails to comply with, observe, enforce or give effect
to any guidelines, circulars, standards or notices
issued by the Bank under section 74, in
circumstances where the person is under an
obligation to comply with, observe, enforce or give

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 54 of 68

effect to such guidelines circulars, standards or

notices, as the case may be,
such person has committed a breach under this Act.
(2) Where a person has committed a breach under
subsection (1) and the Bank is satisfied that it is appropriate
to take action against that person, the Bank may take one or
more of the following actions:
(a) to direct the person in breach to comply with,
observe, enforce or give effect to such provisions,
guidelines, circulars, standards or notices, as the case
may be;
(b) to impose a penalty in proportion to the severity or
gravity of the breach, but in any event not exceeding
one hundred thousand ringgit;
(c) to reprimand the person in breach;
(d) to require the person in breach to take such measures
as the Bank may direct to remedy the breach or to
mitigate the effect of such breach, including making
restitution to any other person aggrieved by such
breach; or
(e) to issue a public statement to the effect that, in the
opinion of the Bank, it is necessary for the purpose of
public interest.
(3) The Bank shall not take any action under subsection
(2) without giving the person in breach written notice
setting out the proposed action and the grounds for such
action.
(4) The person in breach shall be given an opportunity to
make written representation to the Bank within fourteen
days from the date of the written notice.
(5) Where no written representation is received by the
Bank within the period specified under subsection (4), the
Bank shall proceed with the proposed action under
subsection (3) by written notice.
(6) Where written representation is received, the Bank
shall, after considering the representation, give the person
in breach written notice of its decision.
(7) A decision to take action under subsection (5) or (6)
shall take effect immediately or at any date as the Bank
may specify in its written notice, as the case may be.
(8) Where a person has failed to pay a penalty imposed
by the Bank under paragraph (2)(b), the penalty imposed

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 55 of 68

by the Bank may be sued for and recovered as a civil debt

due to the Government of Malaysia.
(9) For the purposes of paragraph (2)(d), in determining
whether or not restitution is to be made by a person in
breach, the Bank shall have regard to—
(a) the profits that have accrued to such person in
breach; or
(b) whether one or more persons have suffered loss or
have been otherwise adversely affected as a result of
the breach.
(10) Without prejudice to any other remedy, where a
direction under paragraph (2)(d) had required the person in
breach to make restitution in the form of monetary payment
and the person in breach fails to pay the restitution, the
Bank may sue for and recover the restitution as a civil debt
due to the person aggrieved by the breach.
(11) Nothing in this section shall preclude the Bank from
taking any of the actions that it is empowered to take under
this Act against the person in breach.
(12) To the extent that any of the amounts obtained
under paragraph (2)(d) or subsection (10) has not been
distributed due to the difficulty of ascertaining or notifying
the aggrieved persons, such amount shall be paid to the
Federal Consolidated Fund.

Civil action by the 76. The Bank may institute civil proceedings in the court
Bank against a person, whether or not such person has been
charged with any offence under this Act, or whether or not
a contravention has been proved in a prosecution.

Power of court to 77. (1) Where on an application by the Bank, it appears

make certain orders to the court that—

(a) there is reasonable likelihood that any person will

contravene any provision of this Act; or
(b) any person has contravened a provision of this Act
and that there are steps which could be taken to
remedy the contravention or to mitigate the effect of
such contravention including making restitution to
any other person aggrieved by such contravention,
whether or not that person has been charged with an
offence in respect of the contravention or whether or not a
contravention has been proved in a prosecution, the court
may, without prejudice to any order it would be entitled to

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 56 of 68

make otherwise than pursuant to this section, make one or

more of the following orders:
(A) an order restraining or requiring the cessation of the
contravention;
(B) an order requiring that person, or any other person,
who appears to have been knowingly involved in the
contravention, to take such steps as the court may
direct to remedy it or to mitigate its effect including
making restitution to any other person aggrieved by
such contravention;
(C) for the purpose of securing compliance with any
other order under this section, an order directing a
person to do or refrain from doing a specified act;
(D) an order restraining the person from acquiring,
disposing of or otherwise dealing with, property
which the court is satisfied such person is reasonably
likely to dispose of or otherwise deal with;
(E) where a person has refused or failed, is refusing or
failing, or is proposing to refuse or fail, to do any act
that he is required to do under any provision of this
Act, an order requiring such person to do such act;
(F) in a case where the person is a chief executive
officer, director or manager responsible for the
money services business of a licensee or money
services business agent, an order removing him from
office or that he be barred from becoming a chief
executive officer, director or manager of the licensee
or money services business agent, or be involved in
the management, directly or indirectly, of the
licensee or money services business agent for such
period as may be determined by the court; or
(G) any ancillary order deemed to be desirable in
consequence of the making of an order under any of
the preceding provisions of this subsection.
(2) If an application is made to a court for an order under
subsection (1), the court may, if in its opinion it is desirable
to do so, before considering the application, make an
interim order and such order shall be expressed to have
effect pending the determination of the application.
(3) The court may, before making an order under
subsection (1), direct that notice of an application be given
to such persons as it thinks fit or direct that notice of the
application be published in such manner as it thinks fit, or
both.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 57 of 68

(4) Where an application is made to the court for an

order under paragraph (1)(E), the court may grant the
order—
(a) where the court is satisfied that the person has
refused or failed to do the required act, whether or
not it appears to the court that the person intends to
again refuse or fail or continue to refuse or fail, to do
the required act; or
(b) where it appears to the court that in the event that
such an order is not granted, it is likely that the
person will refuse or fail to do the required act,
whether or not the person has previously refused or
failed to do the act or whether or not there is any
imminent risk of damage to any person if the person
required to do such act or thing refuses or fails to do
so.
(5) Where an application for an order under subsection
(1) is made by the Bank or any person duly authorized by
the Bank, the court shall not, as a condition of the grant of
the order, require any undertaking as to damages to be
given by or on behalf of the Bank.
(6) Any person who fails to comply with an order under
subsection (1) commits an offence and shall, on conviction,
be liable to a fine not exceeding five million ringgit or to
imprisonment for a term not exceeding ten years or to both.
(7) Subsection (6) does not affect the powers of the court
in relation to the punishment of contempt of court.
(8) The court may rescind, vary or discharge an order
made by it under this section or suspend the operation of
such an order.

Power to make 78. (1) The Bank may, with the approval of the Minister,
regulations make such regulations as may be necessary or expedient for
giving full effect to the provisions of this Act.
(2) Without prejudice to the generality of subsection (1),
regulations may be made—
(a) to provide for administrative actions pursuant to
section 75 and for civil actions pursuant to section
76;
(b) to provide for offences which may be compounded;
(c) to provide that any act or omission in contravention
of any provision of the regulations shall be an
offence; and

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 58 of 68

(d) to provide for the imposition of penalties for offences

provided in the regulations which shall not exceed a
fine of five hundred thousand ringgit or
imprisonment for a term not exceeding three years or
to both.

Power of the Bank to 79. The Bank may, in such form and manner as it
publish information considers appropriate, publish any information as the Bank
may consider necessary or expedient for the purposes of
public interest, including the following information:
(a) the acceptance by any person of an offer to
compound an offence under subsection 88(1);
(b) the repeal or revocation of any exemption granted
under section 91;
(c) the conviction of any person for any offence under
this Act; or
(d) any other action taken by the Bank against any
person under this Act.

PART IX

MISCELLANEOUS

Offence by body 80. Where an offence against any provision of this Act has
corporate been committed by a body corporate, any person who at the
time of the commission of the offence was a director,
manager, secretary or other similar officer of the body
corporate or who in any manner has control of the money
services business of the body corporate or was purporting
to act in any such capacity, or was in any manner or to any
extent responsible for the management of any of the affairs
of such body corporate, or was assisting in such
management, shall be deemed to be guilty of that offence
unless he proves that the offence was committed without
his knowledge, consent or connivance and that he exercised
all due diligence to prevent the commission of the offence
as he ought to have exercised, having regard to the nature
of his functions in that capacity and to all the
circumstances.

Offence by employee 81. (1) Where any person would be liable under this Act
or agent to any punishment or penalty for any act, omission, neglect
or default, such person shall be liable to the same

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 59 of 68

punishment or penalty for every such act, omission, neglect

or default of any employee or agent of his or of the
employee of such agent, if such act, omission, neglect or
default was committed by the employee of the person in the
course of his employment, or by the agent when acting on
behalf of the person, or by the employee of such agent in
the course of his employment by such agent or otherwise
on behalf of the agent.
(2) Nothing under subsection (1) shall absolve an agent,
officer or employee from any liability for an offence.

Joinder of offences 82. Notwithstanding anything contained in any other

written law, where a person is accused of more than one
offence under this Act, he may be charged with and tried at
one trial for any number of such offences committed within
any length of time.

Protection against 83. No action, suit, prosecution or other proceedings shall

suits and legal lie or be brought, instituted, or maintained in any court or
proceedings before any other authority against—

(a) the Minister;

(b) the Bank;
(c) the Governor; or
(d) any of its directors, officers or employees or any
person acting on behalf of the Bank,
for or on account of, or in respect of, any act done or
statement made or omitted to be done or made, or
purporting to be done or made or omitted to be done or
made, in pursuance of or in execution of, or intended
pursuance of or execution of, this Act or any order in
writing, direction or other thing issued under this Act if
such act or statement was done or made, or was omitted to
be done or made, in good faith.

Secrecy 84. (1) No person who is or has been a director, chief

executive officer, controller or employee of a licensee or
money services business agent shall give, produce, divulge,
reveal, publish or otherwise disclose to any person, or make
a record for any person of, any information or document
whatsoever relating to the affairs or accounts of any of its
customers.
(2) No person, who for any reason, has by any means
access to any information or document relating to the
customers of a licensee or money services business agent,

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 60 of 68

shall give, produce, divulge, reveal, publish or otherwise

disclose to any person, or make a record for any person of,
any information or document relating to such customer.
(3) No person who has any information or document
which to his knowledge has been disclosed in
contravention of subsection (1) or (2) shall in any manner
disclose the information or document to any other person.
(4) Any person who contravenes this section commits an
offence.

Permitted disclosures 85. The provisions of section 84 shall not apply to the
disclosure of any information or document—
(a) to the Bank, or to any director or officer of the Bank,
or to any person appointed by the Bank under
subsection 3(3), where the disclosure is for the
purpose of the exercise of powers, the performance
of functions or the discharge of duties of the Bank, or
of the director or officer of the Bank, or of the person
appointed under subsection 3(3);
(b) to any person rendering professional services to the
Bank in relation to any matter of law, accountancy,
valuation, or any other matter requiring professional
knowledge, where he is authorized in writing by the
Bank to obtain the information from the licensee or
money services business agent for the purpose of his
services to the Bank;
(c) which at the time of the disclosure is, or has already
been made, lawfully available to the public from any
source other than the licensee or money services
business agent;
(d) which is in the form of a summary, consolidation,
aggregate or collection of information set out in such
manner as does not enable information relating to
any particular customer to be ascertained from it;
(e) which the customer, or his personal representative,
has given permission in writing to disclose;
(f) where such disclosure is required or authorized under
any other provision of this Act;
(g) where such disclosure is required by any court; or
(h) where such disclosure is required or authorized by
any court or under any written law.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 61 of 68

Attempts, abetments 86. (1) A person commits an offence and is liable to the
and conspiracies penalty for that offence if he—

(a) attempts to commit an offence under this Act;

(b) does an act preparatory to, or in furtherance of, the
commission of an offence under this Act; or
(c) abets or is engaged in a criminal conspiracy to
commit an offence under this Act, whether or not the
offence is committed in consequence of it.
(2) Any provision of this Act which contains a reference
to an offence under any specific provision of this Act shall
be read as including a reference to an offence under
subsection (1) in relation to the offence under that specific
provision.

General penalty 87. Any person who commits an offence under this Act
for which no penalty is expressly provided shall, on
conviction, be liable to a fine not exceeding five hundred
thousand ringgit or to imprisonment for a term not
exceeding three years or to both.

Power to compound 88. (1) The Governor may, with the consent in writing of
the Public Prosecutor, offer in writing to compound any
offence committed by any person under this Act and
prescribed to be a compoundable offence by making a
written offer to such person to compound the offence upon
payment to the Governor of such amount not exceeding the
amount of the maximum fine for that offence within such
time as may be specified in the offer.
(2) An offer under subsection (1) may be made at any
time after the offence has been committed, but before any
prosecution for it has been instituted.
(3) If the amount specified in the offer under subsection
(1) is not paid within the time specified in the offer or
within such extended period as the Governor may grant,
prosecution for the offence may be instituted at any time
after that against the person to whom the offer was made.
(4) Where an offence has been compounded under
subsection (1), no prosecution shall thereafter be instituted
in respect of such offence against the person to whom the
offer to compound was made and any document or thing
seized in connection with the offence may be released by
the Bank, subject to such terms and conditions as the Bank
thinks fit.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 62 of 68

(5) All sums of money received under subsection (1)

shall be paid into the Federal Consolidated Fund.

Prosecution 89. No prosecution for an offence under this Act shall be

instituted except by or with the written consent of the
Public Prosecutor.

Minister may amend 90. The Minister may, on the recommendation of the
the Schedule Bank, by order published in the Gazette amend the
Schedule.

Exemptions 91. The Minister may, by order published in the Gazette,

exempt any particular person or any class, category or
description of persons, from all or any of the provisions of
this Act subject to such limitations, restrictions or
conditions as the Minister may specify in the order.

Act to be read 92. (1) This Act shall be read together with the Exchange
together with the Control Act 1953 and the provisions of this Act shall be in
Exchange Control Act addition to, and not in derogation of, the provisions of the
1953 Exchange Control Act 1953.
(2) In the event of any inconsistencies between the
provisions of this Act and the Exchange Control Act 1953,
the Exchange Control Act 1953 shall prevail.

PART X

REPEAL, SAVINGS AND TRANSITIONAL

Repeal 93. The Money-Changing Act 1998 is repealed.

Act 577.

Savings 94. (1) Subject to section 95—

(a) a person who has been licensed under section 7 of the

Money-Changing Act 1998 shall be deemed to be
licensed under section 7 on the appointed date and
may carry on money-changing business under this
Act;
(b) a person who has been granted permission by the
Controller of Foreign Exchange under section 10 of

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 63 of 68

the Exchange Control Act 1953 to carry on

remittance business shall be deemed to be licensed
under section 7 of this Act on the appointed date and
may carry on remittance business under this Act;
(c) a person who has been granted permission by the
Controller of Foreign Exchange under sections 4, 24
and 25 of the Exchange Control Act 1953 to carry on
wholesale currency business, shall be deemed to be
licensed under section 7 of this Act on the appointed
date and may carry on wholesale currency business
under this Act; and
(d) a person who has received a written notification from
the Bank under section 5 of the Payment Systems
Act 2003 in respect of providing remittance business
by utilising its own remittance system, providing
remittance business by utilising a remittance system
of a third party, or providing a remittance system to
any person, shall be deemed to be approved under
section 40 on the appointed date and may continue to
utilise such system under this Act.
(2) A person specified in subsection (1) shall comply
with such conditions to such extent and within such time,
as the Bank may specify.
(3) Any person who contravenes subsection (2) commits
an offence and shall, on conviction, be liable to a fine not
exceeding five million ringgit or to imprisonment for a
term not exceeding ten years or to both.

Grant of licence to 95. (1) Where the remaining period of validity of the
persons deemed to be licence or the permission referred to in section 94—
licensed or permitted
to carry on business

(a) is less than two years from the appointed date, such
person shall apply under section 5 for a licence to
carry on money services business within three
months from the appointed date or such further
period as the Bank may specify; or
(b) is two years or more from the appointed date, such
person shall apply under section 5 for a licence to
carry on money services business within six months
from the appointed date or such further period as the
Bank may specify.
(2) Where the period of validity of the licence or the
permission referred to in section 94 is not specified, such
person shall apply under section 5 for a licence to carry on
money services business within six months from the

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 64 of 68

appointed date or such further period as the Bank may

specify.
(3) An application under subsection (1) or (2) for a
licence to carry on remittance business shall be submitted
together with the application to obtain the prior written
approval of the Bank under section 40 to utilise a
remittance system, whether its own system or the system of
a third party.
(4) A person referred to in paragraph 94(1)(d) shall be
deemed to have obtained the written approval of the Bank
under section 40 to utilise a remittance system upon the
granting of such approval to a licensee under that section
by the Bank.
(5) The Bank may grant a licence under section 7 to a
person referred to in subsection (1), or (2) with or without
conditions, or refuse to grant a licence.
(6) The licence or permission of a person referred to in
section 94 shall be revoked—
(a) if subsection (1) or (2) is not complied with, upon the
expiry of the period specified in that subsection; or
(b) if subsection (1) or (2) is complied with but a licence
is refused under section 7, on the date of the refusal.
(7) Where the Bank proposes not to grant a licence under
this Act to a person referred to in section 94, the Bank shall
give the person written notice setting out the intention of
the Bank and the grounds for not granting the licence.
(8) The person shall be given an opportunity to make
written representation to the Bank within fourteen days
from the date of the written notice by the Bank.
(9) Where no written representation is received by the
Bank within the period specified under subsection (8), the
Bank shall not grant a licence.
(10) Where written representation is received, the Bank
shall, after considering the representation, give the person
written notice of its decision.
(11) Where the Bank grants a licence under section 7 to a
person referred to in section 94, the licensee shall comply
with the provisions of this Act by increasing its capital
funds to such amount as the Bank may prescribe within one
year from the date the licence is granted.
(12) A licensee who fails to comply with any condition
imposed under subsection (5) commits an offence and
shall, on conviction, be liable to a fine not exceeding five

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 65 of 68

million ringgit or to imprisonment for a term not exceeding

ten years or to both.

Transitional 96. Notwithstanding sections 93 and 94—

(a) all the—

(i) regulations, orders, directions, notifications,
exemptions and other subsidiary legislation,
howsoever called; and
(ii) approvals, directions, decisions, notifications,
exemptions and other executive acts, howsoever
called,
made, given, or done under, or in accordance with, or
by virtue of, the repealed Act, sections 4, 10, 24, 25
and 39 of the Exchange Control Act 1953 in relation
to wholesale currency business or remittance
business, as the case may be, or section 5 of the
Payment Systems Act 2003 in relation to remittance
system operator, shall be deemed to have been made,
given, or done under, or in accordance with, or by
virtue of, the corresponding provisions of this Act,
and shall continue to remain in full force and effect
in relation to the persons to whom they apply until
amended, repealed, rescinded, revoked or replaced
under, in accordance with, or by virtue of, the
corresponding provisions of this Act;
(b) all the guidelines, circulars, standards, notices or
notifications issued by the Bank or the Minister
relating to money-changing business, remittance
business, wholesale currency business and remittance
system operators, before the appointed date and in
force immediately after the appointed date, shall be
deemed to have been lawfully issued under section
74 in relation to the particular provision of this Act
corresponding to the matter dealt with in the
guidelines, circulars, standards, notices or
notifications and shall remain in full force and effect
until amended, rescinded or replaced under this Act;
(c) any application for a licence, permission, approval,
notification or consent, or for any other purpose
whatsoever, made by any person to the Minister or to
the Bank under the repealed Act, sections 4, 10, 24,
25 and 39 of the Exchange Control Act 1953 in
relation to wholesale currency business or remittance
business, as the case may be, or section 5 of the
Payment Systems Act 2003 in relation to remittance
system operator, before the appointed date, and

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 66 of 68

pending immediately before the appointed date, shall

lapse on the appointed date;
(d) transactions or dealings lawfully executed or entered
into, and all business lawfully done, under or in
accordance with the repealed Act, sections 4, 10, 24,
25 and 39 of the Exchange Control Act 1953 in
relation to wholesale currency business or remittance
business, as the case may be, or section 5 of the
Payment Systems Act 2003 in relation to remittance
system operator, shall be deemed to have been
lawfully and validly executed, entered into, or done,
under and in accordance with this Act, and
accordingly, any right or liability under such
transaction, dealing or business existing, immediately
before the appointed date, shall be deemed to
continue to be lawful and valid under this Act;
(e) nothing shall affect the liability of any person to be
prosecuted or punished for offences or breaches
committed under the repealed Act, the Exchange
Control Act 1953 or the Payment Systems Act 2003
before the appointed date;
(f) any pending legal proceeding, criminal prosecution,
investigation or any sentence imposed or action taken
before the appointed date in respect of an offence or
breach under the repealed Act, the Exchange Control
Act 1953 or the Payment Systems Act 2003 may be
instituted, continued or enforced as if this Act had
not been enacted; and
(g) any pending appeal to the Minister under section 13
of the repealed Act shall be continued or completed
under the repealed Act.

SCHEDULE
[Paragraph 75(1)(a)]
EXCLUDED PROVISIONS FROM ADMINISTRATIVE
ACTIONS
The following provisions are excluded from administrative
actions by the Bank:
1. subsection 4(1);
2. subsection 7(4);
3. subsection 9(11);
4. subsection 10(3);
5. subsection 15(1);

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 67 of 68

6. subsection 19(1);
7. subsection 21(1);
8. subsection 23(1);
9. subsection 25(1);
10. subsection 25(2);
11. subsection 27(1);
12. subsection 28(1);
13. subsection 29(1);
14. subsection 30(1);
15. subsection 30(3);
16. subsection 30(4);
17. subsection 30(8);
18. subsection 30(10);
19. subsection 32(1);
20. subsection 32(2);
21. subsection 32(4);
22. subsection 33(2);
23. section 35;
24. subsection 37(1);
25. subsection 37(2);
26. subsection 37(3);
27. subsection 37(4);
28. subsection 37(5);
29. subsection 37(6);
30. subsection 42(1);
31. subsection 45(1);
32. section 62;
33. subsection 65(8);
34. subsection 73(10);
35. paragraph 73(14)(a)
36. subsection 77(6); and
37. subsection 95(12).

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012
Act 731 Page 68 of 68

last updated December

1, 2011.

http://hqapsmart:8080/jun/portaldb/BNMlawstoGBLDencryptedVersion/encryptedversio... 26/01/2012